Proration Policy Fields

Here is a description of the fields on the Proration Policy object.

Key: * – Mandatory field;

Field Name

 

Description

Proration Policy Name

*

Name of the proration policy.

Automatically Assign to New Contracts

 

Indicates that this proration policy is assigned automatically to new contracts unless you select an alternative. It is not assigned when you create a renewal or change request because then the proration policy on the existing contract is copied to the new contract. You cannot select this checkbox for more than one proration policy.

Calculation

Field Name

 

Description
Calculation Method *

Indicates how the amount owed is calculated on contracts that use the proration policy. You can select:

  • Assume 30 Days per Month – the proportion invoiced is based on the number of days used out of the full period, but each month is assumed to have 30 days.
  • Invoice as Full Billing Periods – partial periods are invoiced as full periods. Partial period calculations do not apply if you select this calculation method.
  • Use Actual Days in Billing Period – the proportion invoiced is based on the exact number of days used out of the full period.
  • Use Whole Month Threshold - Billing Central calculates how many whole months are in the partial period, then if the remainder is 16 days or more it is charged as a whole month, but if the remainder is less than 16 days there is no charge for those days.

You cannot change the calculation method if the proration policy is assigned to a contract.

Note:

Regardless of their label, these calculation methods are applied to a line's charge period or billing period depending on which is shorter. Contact your administrator if you want the labels changed to remove references to 'Billing Period'.
Set Final Period to Remainder from First  

When the first and final periods are partial periods, the final period value is adjusted to the residual amount from the first period so that they equal one whole charge period. This checkbox is not applicable if the calculation method is Invoice as Full Billing Periods.

You cannot change this checkbox if the proration policy is assigned to a contract.